SAN FRANCISCO, Nov. 17, 2021 /PRNewswire/ -- PayZen, a mission-driven fintech company tackling healthcare affordability, today announced it has raised $15 million in Series A funding. SignalFire led the round, with participation from Link Ventures and 7wireVentures, as well as existing investors Viola Ventures and Picus Capital, bringing the total amount raised to $20 million.
Medical debt is a $300B problem in the US; nearly one in three Americans have delayed medical care due to cost. PayZen's new round of financing will be used to fix this growing problem and help fuel its mission to help patients "Care Now, Pay Later" (CNPL). Funds will be used to expand the company's product offering, giving more people access to affordable healthcare payment options. PayZen's first-of-its-kind, AI-backed technology allows hospitals, health systems and large physician groups to more accurately determine a patient's unique ability to pay. All patients qualify, never paying any interest or any fees, while providers retain complete flexibility over the program with no administrative burden.
PayZen's digital platform seamlessly works with any healthcare system and makes the application process seamless for both patients and hospital administrators. The company plans to invest further in its AI and machine learning technology to expand its underwriting capabilities across financial, medical and alternative data sets, making CNPL a reality for 100% of patients. Many of the existing market solutions are designed for elective procedures rather than continuous care, which is an area of healthcare that is often neglected, particularly since the pandemic.
"Patient payment responsibility has more than doubled throughout the last two decades, placing a disproportionate burden on Americans who can't afford large lump sum medical invoices," said PayZen's CEO and co-founder Itzik Cohen. "At PayZen, our mission is to address healthcare affordability for everyone, no matter the stage of care. With this fresh round of capital, we're excited to improve the quality of more people's lives, while serving as a trusted technology partner to medical providers across the country."
As PayZen experiences an increased demand for its technology, the funds will also be used for investments into its marketing and business development teams. By the end of 2021 in less than a year in business, PayZen is set to have several major health systems and hospitals signed on to drive affordability for its patients, including PA-based hospital, Geisinger, who saw 82% of patients enroll in programs and payment collection increase by 23% after implementing PayZen's platform.
"Medical debt remains the number one source of bankruptcy in the US, and as a result, people are avoiding potentially life-saving care. With PayZen's zero-interest model, Americans can stop being forced to make the choice between a doctor's appointment and a rent bill," said Chris Scoogins, Partner at SignalFire. "This technology removes friction on all sides, allowing patients to focus on recovery and hospitals to focus on treatment. We're thrilled to put our support behind the team and their mission of making healthcare affordable for all."
As growth continues, Richard Lopez del Rincon has joined the company as its first Chief Revenue Officer, bringing over two decades of experience in scaling revenue cycle management companies and technologies. Looking to the future, PayZen has ambitious 2022 goals and expects to grow its customer base by 500% and increase payment volume by 10,000% in the next 12 months.
To learn more about PayZen, visit www.payzen.com.
PayZen is a mission-driven healthcare fintech company that aims to tackle the growing patient payment responsibility problem with superior technology and a modern approach. PayZen is backed by leading equity and credit capital investors and is led by proven technology veterans with a successful track record of helping millions of Americans overcome financial struggles.
SignalFire is the first venture capital firm built from the ground up as a technology company, The company invests in leaders with an uncommon passion, offering unprecedented data, advice, and access from seed to scale. With a hybrid technology and people-powered approach, the team is uniquely qualified to help founders navigate the toughest parts of building a company at every stage, including recruiting, expert advice, and a corporate network. Launched in 2013, the firm has nearly $1B in assets under management and has made notable investments in top Silicon Valley startups including Zume, Lyric, Ro, Grammarly, Color Genomics, ClassDojo and Frame.io among others.
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